How General Electric Makes Billions

Historically, GE Earns Billions in Profit Each Year

In 2014, it made over $15.2 billion!

Eight Ways to Profit

With seven industrial segments and a multifaceted financial services business,

GE has eight major avenues to profit.

Seven Industrial SegmentsAccounted for 84% of Adjusted Operating Earnings in Q2

Power & WaterOil & Gas

Energy ManagementAviation

HealthcareTransportation

Appliances & Lighting

Power & Water

• Power generation• Industrial• Government

Primary Customers:

Wind, oil, gas, diesel, nuclear, and water

GE 9HA gas turbine. Source: GE

Sources for Power Generation:

Oil & Gas

• Drilling• Completion• Production and oil field

operations• Transportation • Pipelines• Power generation to the

petrochemical industry

Serving All Segments of the Oil and Gas Industry

Source: GE

85% of the world’s offshore oil rigs use GE’s oil and gas products.

Energy Management

• Oil and gas• Marine• Data centers• Metals and mining

Delivering, Managing, Converting, and Optimizing Electrical Power

Source: GE

Industries Served

Operates in over 150 countries worldwide

Aviation

• Commercial and military customers

• Largest industrial segment by profit in Q2

• Upcoming LEAP jet engine has been one of GE’s most successful product launches ever

Aircraft engines, components, and critical systems

Source: GE

Healthcare

• Hospitals• Medical facilities• Pharmaceutical

Companies• Biotechnology companies• Academia

Medical Imaging, Patient Monitoring, Drug Discovery, and Biopharmaceutical Manufacturing

Source: GE

Primary Customers

Transportation

• Railroads• Marine• Drilling and mining

GE’s Tier 4 locomotive(pictured) is the only locomotive onthe market that meets EPA’s highestemission standard.

Locomotives, Mining Vehicles, and Stationary Diesel Engines

Source: GE

Industries Served

Appliances & Lighting

• Highly competitive marketplace

• Managing costs is crucial to remain competitive

• Appliances unit to be sold to Electrolux for $3.3 billion, subject to regulatory review

For Consumer and Industrial Uses

Source: GE

Q2 Industrial Segments by Revenue

Source: GE

Q2 Industrial Segments by Profit

Source: GE

GE Capital: The Eighth Profit Center

Undergoing a Massive RestructuringGE is exiting the traditional financial services business.

It’s selling off any part of GE Capital that doesn’t support its industrial businesses.

In 2015, GE expects to sell off $100 billion of GE Capital assets.

GE Capital Exit Goals“Create a simpler, more valuable industrial

company” – CEO Jeff Immelt

Reduces financial oversight and risk of financial shocks

By 2018, GE wants 90% of its earnings to come from industrial activities.

The Road to Simplicity

Source: GE

The Road to Simplicity

Source: GE

The Bigger Picture

GE’s mission is to move, power, build, and cure the world.

The company aims to capitalize on global opportunities that fulfill this mission.

Aligning the company and its mission is crucial to its future success.

This $19 trillion industry could destroy the InternetOne bleeding-edge technology is about to put the World Wide Web to bed.

The Economist is calling it "transformative"

But you'll probably just call it "how I made my millions."

Don't be too late to the party -- click here for one stock to own when the Web goes dark.